Copper Hits Record in London as Supply Fears Fuel Rally

Group 1 - Copper prices experienced significant volatility, with a notable increase of up to 6.6% in initial trading, marking the largest intraday gain since 2022, before settling at approximately 1.6% higher by mid-afternoon in London [1] - The surge in copper prices caps an extraordinary year, positioning it for its best performance since 2009, driven by unplanned mine outages and uncertainties surrounding trade policies [2][3] - Recent supply constraints have been exacerbated by a deadly accident at a major copper mine in Indonesia, an underground flood in the Democratic Republic of Congo, and a fatal rock blast in Chile [4] Group 2 - Long-term demand for copper remains robust, supported by electrification trends and anticipated increases in consumption due to the growing power demands of artificial intelligence [5] - Industry analysts express concerns over the depletion of easily accessible mining resources, raising questions about future supply to meet projected consumption growth over the next decade [6] - Some analysts caution that current copper prices may be too high, particularly as underlying demand in China, the largest consumer, shows signs of weakening, leading to production cuts in some fabrication plants [7]